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Nic FranklinNic FranklinFounder

25 Aug 20267 min read

Digital Advertising Weekly: 25 August 2026

A lot moved in digital advertising this week — an AU media pricing standoff, new regulation, and growing evidence that AI is quietly reshaping whether people click on anything at all.

Illustration for the article Digital Advertising Weekly: 25 August 2026

The digital advertising world rarely sits still, but the last few weeks have felt particularly loaded — a media pricing standoff here at home, new regulation reshaping what can and can't be advertised, and a growing body of evidence that AI is quietly reshaping how (and whether) people click on anything at all. Here's our roundup of the stories we think Australian marketers should actually have on their radar.

Australia's media pricing war is heating up

Closer to home, there's real tension building in Australia's media buying landscape. Industry reporting describes what's being called “some kind of breaking moment” in pricing negotiations between agencies and publishers, as both sides push harder on rates in an increasingly competitive, increasingly automated buying environment. For brands, this is worth watching closely over the next few months — pricing pressure at the agency-publisher level tends to flow through to media plans one way or another, whether that's tighter inventory, renegotiated packages, or shifts toward channels with more pricing transparency.

New regulation: News Bargaining Incentive and gambling ad reform

On the policy front, Australian parliament has passed legislation covering both the News Bargaining Incentive and reforms to gambling advertising. Together, these changes affect how advertising dollars flow to news publishers and tighten restrictions around gambling promotion. If your business operates anywhere near either of these categories — or you place media with partners who do — it's worth getting familiar with the detail rather than assuming it's someone else's problem.

Google's AI Overviews are quietly gutting click-through rates

This one's a big deal globally, and it's not slowing down. New data shows that roughly 80% of Google searches that return an AI-generated summary now end without the user clicking through to any website at all. That's a dramatic shift in how “search visibility” translates (or doesn't) into actual traffic, and it's forcing a rethink of SEO strategy across the board. The practical implication: ranking well in traditional search results is no longer enough on its own. Brands need to think about how they show up inside the AI summary itself.

Retail media keeps climbing — but the growth curve is bending

WARC's latest forecast has global retail media advertising hitting US$200 billion in 2026, cementing it as one of the fastest-growing corners of the ad industry. That said, the growth rate itself is decelerating slightly compared to previous years — a sign the channel is maturing rather than slowing down. For brands not yet active in retail media, this remains one of the more compelling channels to test, particularly for e-commerce and FMCG categories.

Legal pressure is mounting on Meta

A cluster of lawsuits is reportedly building pressure that could force Meta to redesign core parts of Facebook and Instagram. Details are still emerging, but it's a reminder that the platforms advertisers rely on most heavily are also the ones facing the most regulatory and legal scrutiny right now — all the more reason to avoid putting all your media budget in one platform basket.

AI is changing the agency relationship, fast

Finally, a trend worth sitting with: agencies are reporting real, measurable shifts in how AI is affecting their business models. One holding company agency saw a 30% higher pitch win rate after deploying an AI agent internally to support new business processes. On the flip side, some agencies are seeing clients use AI tools directly for work that would previously have been billed to the agency — with estimates suggesting this could mean a 30–50% revenue impact for services that AI can now approximate in-house.

The takeaway

If there's a common thread through all of this, it's that the ground is shifting on multiple fronts at once: how people search, how media gets priced, what's legally allowed, and who actually does the work of advertising. None of it is a reason to panic — but it is a good reason to revisit your media mix and measurement approach every quarter rather than setting and forgetting.

Nic Franklin, Founder at Franklin Marketing

Written by

Nic Franklin

Founder

Nic leads strategy across every Franklin account, connecting paid media, CRM and sales execution into one revenue system. He has spent over a decade building performance programs for Australian property, health and hospitality brands.

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